When first moving to a new country, it’s natural to schedule your first few days accomplishing administrative tasks to make living there feel smooth and convenient.
Among the checklist of things to do after moving in, one of the most crucial tasks you must do upon moving into Australia—or any new country, for that matter—is setting up a local bank account.
A bank account helps not only in securing your funds. It’s also used to accept wages, to pay bills and utilities, and to even grow your money through interest. This is the fundamental premise of bank accounts—and you may be wondering: what makes Australia’s banking system so different?
If you want to understand what Australia’s banking system is like as a migrant, then you’re in the right place. In this article, we’ll get to the bottom of how the local banking system works and how it differs for migrants who’ve just recently moved to the country.
Let’s jump right into it!
Understanding Australian Bank Account Types
The primary thing you should know as a new migrant is the different bank account types that are made available to you from the start.
The good news is that migrants are free to access banking services to the same degree as locals. The only major difference is the application process, as migrants wouldn’t have the same local residence cards that the majority of locals already have in their possession.
Knowing this is crucial to understanding Australian banking services as a whole, so it’s best to start familiarising yourself with the most common types you’ll come across.
The first Australian bank account type that migrants can apply for is a transaction account. This account is designed to be used for daily transactions, such as paying bills using a card or online platforms, receiving wages, and withdrawing cash.
This type is crucial for facilitating a variety of daily activities in Australia, especially digital features, as most Aussies opt for cashless transactions.
The second most popular Australian bank account type is a savings-focused account. This account type is intended for storing money in a short or medium-term horizon to earn interest and keep funds safe.
Some banks offer higher interest rates than others, incentivising new clients to opt for them over competitors. That said, they also come with specific deposit minimums and withdrawal limits, so be sure to read the fine print before selecting just any banking partner.
Beyond transaction and savings accounts, there are other options you may encounter later on, including term deposits, offset accounts, and credit accounts. However, these are typically more relevant once you’ve established a more stable income in Australia.
You may also be eligible for financial support provided by the government. You can access these services through the Services Australia website.
How to Open a Bank Account in Australia as a Migrant
Now that you’re aware of the different bank account types you can access as a migrant, the next step is to figure out how to open a bank account in the country in the first place.
The process is relatively simple, and many migrants can get a bank account set up within the same day by following this simple step-by-step process.
Here’s what you should know to successfully open an Australian bank account:
1. Choose a Suitable Banking Provider
The first thing you must consider before entering Australia’s banking system is to select a banking provider that can best cater to your needs.
The good news is that most major banking institutions in Australia are migrant-friendly, such as Westpac. They have options that can make it easy for newcomers to get their banking needs met on short notice.
That being said, while the fundamentals are the same, banks can differ from others. It’s critical to know the different features offered by each banking provider before making your decision. Some have no minimum deposit fees, while others have, and others could have higher interest rates than the competition.
Knowing the unique offerings of each banking provider can help ensure that you make the right pick when selecting your next banking partner. In turn, this can make it easier for you to conduct daily activities in Australia involving your finances.
2. Prepare Your Documents
Once you’ve chosen a suitable banking provider, the next step is to prepare the necessary documents to support your application.
While requirements may vary slightly between banks, most Australian institutions ask for similar forms of identification. Typically, this includes your passport and a valid Australian visa. Some banks may also request proof of an Australian address, though this can often be provided after you arrive in the country.
If available, it’s also recommended to have your Tax File Number (TFN) ready. While not always required at the time of application, providing your TFN helps prevent higher taxes on interest earned in your account.
Having these documents organised in advance can speed up the account-opening process and reduce unnecessary delays. This, in turn, gets you primed and ready to settle into Australia sooner rather than later.
3. Submit Your Application
After gathering your documents, the next step is to submit your application. You have two ways of doing so: either online or in person at a bank branch.
The most convenient way is to submit your application online. Most major banks in Australia have their own website and app that make it easy for you to manage your bank account from registration to everyday management.
Utilise the features provided by the website or app to your advantage, as this is one of the most convenient ways of opening a bank account in Australia.
You can also submit your application through a bank branch. This option is preferred if you have specific requests, such as setting up automatic payroll deposits, linking multiple accounts, or clarifying specific account features.
Visiting a branch also helps prove your identity and connect you with a potential relationship manager, which can be useful if you want someone to walk you through the process more readily.
In any case, you will have to wait for some time until you get notice of your application’s status. If approved, your account will be issued under your name, and you can use it for everyday transactions. Taking the time to complete this step carefully ensures your banking setup is accurate from the start.
4. Use The Bank Platform’s Features
Once your bank account is set up, it’s crucial to familiarise yourself with the features offered through your bank’s online and mobile platforms.
Australian banks rely heavily on digital banking, allowing customers to manage most financial tasks without visiting a branch.
Through your bank’s app or website, you can easily check balances, transfer funds, pay bills, and monitor transactions in real time.
Many platforms also support features such as PayID, scheduled payments, and automatic bill payments manage your finances more effectively. Some banks even offer budgeting tools and savings goals within the app.
By fully utilising these digital features, you can streamline your banking needs and adapt more easily to Australia’s largely cashless payment culture.
We hope that this guide will serve you well as you navigate Australia’s banks and financial landscape at large. All the best in handling your transition!